Elkem curtails production in Norway due to high power prices
Elkem has decided to partially curtail its production in Norway by temporarily shutting down two furnaces – one at Thamshavn and one at Rana. This is due to high power prices.
Elkem is well-positioned with long-term power contracts securing the company’s electricity consumption in Norway at competitive rates. However, in the current market, curtailing production enables the company to optimise value creation by selling its power at highly attractive rates in the Norwegian power market. The decision will have no impact on customers or employees.
“In the short term, this is a win-win: By reducing some of our production, we can optimise value creation for Elkem and contribute to increased flexibility in a tight power market for households and businesses in Norway. We will use this time to bring forward maintenance and improvement work at our plants to position for the future”, says Elkem’s CEO Helge Aasen.
“In the long term, however, we are concerned about what the current situation says about Norway’s ability to provide competitive power to households and businesses. It should not be more profitable to sell power than to produce critical materials for the green transition. We see a huge potential to leverage Norway’s surplus of renewable hydropower as a competitive advantage for existing and new green value chains, as we have done since the early 1900s, but securing this requires political action” says Aasen.
The two furnaces are expected to remain shut until early first quarter 2023. Elkem’s plant in Thamshavn mainly produces silicon while the plant in Rana mainly produces ferrosilicon. Elkem has twelve furnaces in total in Norway and temporary curtailments to sell power may also be relevant at other sites, depending on market developments.
For more information:
Odd-Geir Lyngstad, VP Finance & Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.no
Fredrik Norman, VP Corporate Communications & Public Affairs
Tel: +47 918 66 567
Email: fredrik.norman@elkem.no
About Elkem
Elkem is one of the world's leading providers of advanced material solutions shaping a better and more sustainable future. The company develops silicones, silicon products and carbon solutions by combining natural raw materials, renewable energy and human ingenuity. Elkem helps its customers create and improve essential innovations like electric mobility, digital communications, health and personal care as well as smarter and more sustainable cities. With a strong track record since 1904, its global team of more than 7,000 people has a joint commitment to stakeholders: Delivering your potential. In 2022, Elkem achieved double A- scores from CDP for the company’s efforts on climate and forests. The company in 2021 delivered an operating income of NOK 33.7 billion. Elkem is listed on the Oslo Stock Exchange (ticker: ELK) where it is also a member of the OBX® ESG Index, a selection of 40 blue-chip companies listed in Norway demonstrating best Environmental, Social and Governance (ESG) practices. www.elkem.com
